Futures Contracts Require That the Purchaser Deposit an Initial Sum

question 59

Multiple Choice

Futures contracts require that the purchaser deposit an initial sum as collateral. This deposit is called a:

• A) collateralized deposit.
• B) marked market sum.
• C) margin.
• D) settlement.

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Definitions:

Balance Theory

A psychological theory suggesting that people strive for harmony and consistency in their relationships, attitudes, and beliefs, avoiding imbalance or discord.

Cognitive Consistency

A model of social cognition in which people try to reduce inconsistency among their cognitions, because they find inconsistency unpleasant.

Balance Theory

A psychological theory that suggests individuals strive for a harmonious balance in their relationships and beliefs, avoiding inconsistency among their thoughts.

Triad

In sociology, a group of three people, which provides the simplest unit for studying complex group dynamics.